Waste Management

I. Management Objectives and Strategies

Our company is committed to reducing waste generation during the manufacturing process. Through process optimization, source reduction, and resource reuse, we continuously enhance resource recycling performance to comply with regulatory requirements and move towards sustainable operation. We have engaged CMA CGM to confirm the following:

II. Indicators and Targets for Waste

III. Analysis of the Impact and Challenges of Waste Management

IV. Legal Compliance and Sustainability Commitment

Our company fully complies with government regulations and international sustainability standards in waste management, including the following practices:

1. Strictly adhere to the Waste Disposal Act in carrying out classification, labeling, recording, and reporting procedures.
2. Regularly review the legality and compliance of the flow and disposal methods of waste materials in the factory area.
3. The management strategy follows the principle of "avoidance of generation > reduction > reuse and recycling > final disposal".
4. Through internal education and management systems, we comprehensively enhance employees' environmental awareness and their ability to implement circular economy practices.
5. By adopting clean production, resource utilization, and pollution prevention measures, we aim to create a low-carbon, low-waste green operating model.
   

V. Future Outlook

Our company will continue to:

1. Introduce innovative green technologies to improve the efficiency of waste recycling and reuse.
2. Invest in recycling facilities and optimize waste flow management.
3. Establish partnerships with upstream and downstream partners in the supply chain to jointly promote the development of a circular economy.
4. Improve the data-driven monitoring and performance tracking system to implement quantifiable waste reduction and carbon management targets.

Hazardous Waste Resource Utilization Project: Promoting a circular economy and achieving waste reduction and recycling.

I. Project Background

To fulfill its commitment to sustainable development and to further integrate the principles of the circular economy into daily operations, Arizon RFID Technology officially launched the Hazardous Waste Resource Recovery Project in November 2024.
Through this initiative, nonconforming products that were previously outsourced for incineration are now redirected to qualified new suppliers with professional expertise to recover and reuse metals and metal compounds.

In the past, certain hazardous waste generated during the production process was treated through incineration. While this approach complied with relevant environmental regulations, it still posed concerns regarding resource waste and potential secondary pollution. Guided by the philosophy of shifting from end-of-pipe treatment to source reduction and resource circulation, the company’s management team initiated this resource transformation decision.

Following a rigorous supplier qualification process and technical evaluation, Arizon RFID Technology introduced partners with certified capabilities in recycled metal recovery, redefining waste as reusable “misplaced resources” and advancing its sustainable resource management practices.

II. Project Results

As of July 2025, the project had successfully completed the resource recovery treatment of 13.99 tons of hazardous waste, achieving the following significant environmental benefits:

1. Resource recycling and carbon reduction benefits
   By recycling and reusing metal components, reliance on primary ore mining and metal smelting is reduced, thereby lowering carbon emissions and energy consumption. This helps to form a closed-loop management model of "reduction-regeneration-reuse," maximizing resource utilization efficiency.
2. Pollution reduction and environmental risks
   Compared to incineration, the resource recovery process completely avoids the greenhouse gases, fly ash, and other secondary pollutants that may be generated during incineration. This effectively reduces the potential impact of final waste treatment on the atmosphere and soil environment, further improving corporate environmental management performance.
3. Comprehensive benefits and sustainability implications
   The successful implementation of this project marks a significant breakthrough for Yongdao in the field of hazardous waste management and resource recycling, concretely fulfilling the company's core commitment to "Environmental (E) Responsibility" within the ESG framework. By shifting hazardous waste from "end-of-life treatment" to "recycling," the company not only reduces its environmental burden but also creates dual environmental and economic value, demonstrating its determination to drive green transformation with innovative thinking.

III. Looking to the Future

Arizon RFID Technology will continue to deepen its experience in hazardous waste resource utilization, establish a more comprehensive waste classification and recycling management system, and expand the scope of recycling to more process stages.

In the future, the company will take "zero waste disposal" as its long-term goal, continuously promote the development of green supply chains and circular economy, and achieve sustainable resource utilization and environmental prosperity.

IV. Long-term vision (after 2028)

Arizon RFID Technology will continue to pursue its long-term vision of "Zero Waste to Landfill" .

        Promote process reduction and material substitution ;

        Strengthening the supply chain to jointly create a green ecosystem ;

With the utilization rate of renewable resources and carbon emission reduction as the core performance indicators, we will build a complete circular manufacturing value chain.

By continuously optimizing its resource recovery process and expanding its green cooperation network, Arizon RFID Technology expects to achieve its overall goal of zero hazardous waste incineration by 2030, and fully realize its sustainable transformation of "from waste to materials, green recycling".